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Crypto.com And BlockFi Lays Off ✂️ Employees Due to Crypto Turmoil
Major crypto companies BlockFi and Crypto.com have announced layoffs from their workforce- making them the latest firms in the digital asset space to lay off employees amid a brutal bearish market.
Cryptocurrency exchange Crypto.com will lay off about 260 people, the exchange’s CEO, Kris Marszalek, said.
In a Twitter post, Kris said, “That means making difficult and necessary decisions to ensure continued and sustainable growth for the long term by making targeted reductions of approximately 260 or 5% of our corporate workforce.”
Kris added that the company’s approach is to stay focused on executing against its roadmap and optimize its profitability.
Meanwhile, crypto lending firm BlockFi will cut its workforce by around 20 percent.
“We are reducing our headcount by roughly 20% and the reduction impacts every team at the company. This decision was driven by market conditions that have had a negative impact on our growth rate and a rigorous review of our strategic priorities,” Prince said in an announcement.
The layoffs come as the crypto market is struggling as a whole, with prices of cryptocurrencies falling, and exchanges halting transactions, among other issues.
SEC Asks Charles Schwab to Pay $187 Million 💵 Over Robo-Advisor Dispute
Charles Schwab Co. has agreed to pay a record $187 million fine imposed by the US Securities and Exchange Commission (SEC) to settle allegations that it failed to inform clients about the hidden costs of its robo-advising product.
From March 2015 to November 2018, Schwabe misled clients and prospective investors in its Schwab Intelligent Portfolios Robo about the hidden cost of cash holdings while promising in disclosures to provide optimal returns, the SEC claimed.
Schwab has neither admitted nor denied the allegations in the SEC’s order.
In a statement, a company spokesperson said, “We believe resolving the matter in this way is in the best interests of our clients, company, and stockholders as it allows us to remain focused on helping our clients invest for the future.”
As part of the settlement, three Schwab subsidiaries — Charles Schwab & Co., Charles Schwab Investment Advisory, and Schwab Wealth Investment Advisory have agreed to pay $135 in civil penalty and an additional $52 million in disgorgement and interest to affected clients.
Researchers Claim to Have Designed E-Stablecoin
A peer-reviewed paper published by the researchers at Lawrence Livermore National Laboratory has proposed a radical, new design for an asset-backed stablecoin.
Two scientists have combined statistical mechanics and information theory to design a class of stablecoin dubbed the Electricity Stablecoin (E-Stablecoin) that would transmit energy as a form of information.
They have put forward protocols that would enable a decentralized sort of conversion between data and electricity — with kilowatt-hours becoming the backing asset for a stablecoin.
“We reveal how electricity can be used to collateralize a stablecoin such that each token can be exchanged for one kilowatt-hour (KWh) of electricity and vice versa, without any centralized authorities,” explains an abstract from the paper.
The E-Stablecoin would be minted through the input of one kilowatt-hour of electricity, in addition to a fee.
The minted stablecoin can be utilized for transactions the same way as any other stablecoin, or the energy could be extracted by burning it, also for a fee. \
The complete process would be controlled by smart contracts, and no centralized authority would be required to maintain or disburse the asset.
Cereal Maker Magic Spoon Raises $85 Million in Series B Funding 💰
Magic Spoon, a cereal maker that offers a wide range of flavored cereals, has raised $85 million in its Series B funding round.
The funding was led by private investment firm High Post Capital, along with participation from Siddhi Capital, Coefficient Capital, Constellation Capital, and Carter Comstock.
Celebrity investors, including Shakira, Russell Westbrook, Amy Schumer, Halsey, The Chainsmokers, Odell Beckham Jr., and Nas also participated in the round.
Founded in 2019 by Gabi Lewis and Greg Sewitz, Magic Spoon offers a wide range of nostalgic flavored cereal, but with better ingredients and zero added sugar.
The cereals offered by the company are high in protein, low in carbohydrates, keto-friendly, and free of gluten, grains, soy, and anything artificial.
With its product range, Magic Spoon wants to transform the cereal industry by building a new category of nutritious and flavorful cereal.
Magic Spoon will use the fresh capital to accelerate its rapid growth, expand from 100% direct-to-consumer into retail, add talent to scale-up logistics, and amplify widespread brand awareness.
Around the Web 🌐
GM’s Chevrolet Blazer EV Will Debut on July 18: U.S. automaker General Motors (GM) is scheduled to reveal more details of the 2024 Chevy Blazer EV at its official unveiling on July 18. The all-electric mid-sized SUV is expected to go on sale in spring 2023.
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